Next Year's Standard Land Official Price Up 10.37%... Largest Increase in 14 Years

The site of the Nature Republic store in Myeongdong, Jung-gu, Seoul has held the position as the most expensive land nationwide for 18 years. On the 23rd, the Ministry of Land, Infrastructure and Transport announced the proposed official land prices for next year. The official land price of the Nature Republic store site was surveyed at 206.5 million KRW per square meter, making it the most expensive land in the country. The total official land price for the entire site (169.3㎡) amounts to 35 billion KRW.
[Image source=Yonhap News]

[Asia Economy Reporter Lee Chun-hee] The official land price is expected to continue its upward trend for the 12th consecutive year. It rose by a whopping 10.37%, marking the largest increase in 14 years since the 12.40% recorded in 2007.

The Ministry of Land, Infrastructure and Transport announced on the 23rd that from the 24th of this month to the 12th of next month, a 20-day period will be held for owners to access and provide opinions on the proposed official land prices for 520,000 standard land parcels nationwide as of January 1 next year.

Standard land parcels are representative plots selected from the 33.98 million land parcels subject to official announcement, with 520,000 parcels chosen nationwide. The remaining 33.46 million parcels have their individual official land prices calculated by each city, county, and district using the standard land official prices and adjustment tables.

According to the Ministry of Land, the rate of change in next year's standard land official prices was calculated at 10.37%. This marks 12 consecutive years of increase since a 1.42% decline in 2009, right after the financial crisis. The increase rate expanded by a significant 4.04 percentage points from last year's 6.33%, more than double the recent 10-year average of 4.68% up to this year. The substantial rise appears to be due to the application of the realization rate following the 'Real Estate Official Price Realization Plan' announced last month.

Annual Standard Land Official Price Nationwide Change Rate Status (Provided by Ministry of Land, Infrastructure and Transport)

Looking at the rates by city and province, official land prices rose in all regions nationwide. Amid the impact of the 'Capital Relocation Theory,' Sejong showed the highest increase at 12.38%. All special and metropolitan cities except Incheon and Ulsan showed increases exceeding 10%, including Seoul (11.41%), Gwangju (11.39%), Busan (11.08%), Daegu (10.92%), and Daejeon (10.48%). However, Incheon’s increase rate doubled from 4.27% this year to 8.82% next year, and Ulsan’s increase rate surged 4.3 times from 1.76% to 7.54%.

In Seoul, 16 out of 25 autonomous districts showed an increase rate exceeding 10%. Gangnam-gu recorded the highest increase rate at 13.83%, followed by Seocho-gu (12.63%), Yeongdeungpo-gu (12.49%), Gangseo-gu (12.39%), and Songpa-gu (11.84%). Notably, Gangseo-gu’s increase rate rose by a significant 5 percentage points from 7.42% this year to 12.39% next year.

Nationwide, all 250 cities, counties, and districts showed an upward trend. Among them, 64 areas (25.6%) showed an increase rate above the national average. Yangyang-gun in Gangwon Province showed the highest increase rate at 19.86%, followed by Gunwi-gun in Gyeongbuk Province (15.69%), Gangnam-gu in Seoul, Suseong-gu in Daegu (13.82%), and Nam-gu in Busan (13.76%). Tongyeong-si in Gyeongnam Province showed the lowest increase rate nationwide at 3.94%.

By official price range, parcels priced below 100,000 KRW accounted for the largest proportion at 58.0%. Parcels priced between 100,000 KRW and less than 1,000,000 KRW accounted for 25.0%, and those between 1,000,000 KRW and less than 10,000,000 KRW accounted for 16.2%. Parcels priced above 20,000,000 KRW accounted for only 0.2%.

The highest official land price nationwide was recorded at the Nature Republic site in Myeongdong, Seoul. It has held the top spot for 18 consecutive years. After reaching nearly 2 billion KRW per square meter at 1.99 billion KRW last year, it rose 3.8% this year to 2.065 billion KRW. The total official land price for the entire site (169.3㎡) amounts to approximately 35 billion KRW.

By usage, residential standard land showed the highest increase rate at 11.08%. Commercial standard land rose by 10.14%, followed by farmland (9.24%), forest land (8.46%), and industrial land (7.56%).

Next year’s proposed standard land official prices will be finalized and announced on February 1 next year after hearing opinions from owners and local governments and review by the Central Real Estate Price Public Announcement Committee. According to the revised 'Real Estate Public Announcement Act Enforcement Decree,' the proposed official prices will be individually notified to all co-owners, and opinions will be collected not only from the heads of cities, counties, and districts but also from the governors of the relevant cities and provinces to strengthen the opinion hearing process on the proposed official prices.

Detailed proposed official prices can be viewed on the 'Real Estate Official Price Informer' website starting from the 24th. They can also be viewed at the civil service offices of the city, county, or district where the standard land is located from the 24th until the 12th of next month.

If there are any opinions, they can be submitted online via the Real Estate Official Price Informer website or in writing to the appraiser in charge of the relevant standard land or the civil service office of the city, county, or district by the 12th of next month.

This content was produced with the assistance of AI translation services.